Study: Obamacare threatens 3.2 million small business jobs

quote:Over one-third of the 9.1 million full-time jobs among America’s diverse business franchises could be cut back or eliminated by Obamacare as small businesses struggle to maintain profitability while coughing up money to pay for Washington-mandated health care coverage, according to the International Franchise Association.

The threat of hitting 3.2 million full-time workers as the Affordable Care Act takes effect next year is prompting the owners of fast food restaurants, service companies and other franchises to urge Congress to make significant changes in Obamacare.

To help their cause, the association on Friday released a new state-by-state breakdown on the potential impact on jobs in the bull’s eye of Obamacare, which declares that a 30-hour week is full-time, not the industry accepted 40 hours. That 10-hour difference has thousands of franchise owners scrambling to either fund healthcare for those working 30 hours, or cut hours back to below 30 hours.

re: Study: Obamacare threatens 3.2 million small business jobs(Posted by cajunangelle on 3/23/13 at 8:25 am to cajunangelle)

Just yesterday I spoke with several that work for small companies. They are lucky to be working 20 hours a week and their health insurance price (even split 50/50 with the employer) guts their paycheck. It is hard to eat and pay bills with savings accounts wiped out. Also if they want a family or spouse on; it guts almost their entire paycheck.

I spoke with a friend married to a teacher and she said down the line spouses will be dropped from healthcare and they have a union. Unions won't always be excempt. She said it will hit them last, but it will hit.

Even small companies with under 50 employees are suffering in the same manner as no one is getting 40 hours. So the ObamaCare scheme to get everyone on ObamaCare will work with them as well.

NFIB's Research Foundation has issued the following update to the previous 2011 study on the impact of the Health Insurance Tax (HIT) as a result of the Patient Protection and Affordable Care Act (PPACA):

The Research Foundation’s BSIM (Business Size Impact Module) predicts the rise in cost of employer-sponsored insurance stemming from the HIT will result in a reduction in private sector employment of 146,000 to 262,000 jobs by 2022, with 59 percent of the job losses coming from small businesses.

This will amount to a reduction of U.S. real output (sales) by between $19 billion to $35 billion during the same time frame. The previously released study in 2011 predicted a loss of 125,000 to 249,000 jobs and $18 to $30 billion in sales by 2021.

Highlights from the Update:Nationally: 146,000 to 262,000 jobs lost and $19 billion to $35 billion in lost sales

California: 15,600 jobs lost by 2022; $8.9 billion in sales lost for California small business

Colorado: 3,200 jobs lost by 2022; $1.4 billion in sales lost for Colorado small business

Florida: 6,100 jobs lost by 2022; $2.3 billion in sales lost for Florida small business

Illinois: 3,200 jobs lost by 2022; 1.8 billion in sales lost for Illinois small business

Massachusetts: 1,200 jobs lost by 2022; $700 million in sales lost for Massachusetts small business

New York: 3,100 jobs lost by 2022; $1.5 billion in sales lost for New York small business

Ohio: 3,400 jobs lost by 2022; $1.5 billion is sales lost for Ohio small business

Pennsylvania: 3,400 jobs lost by 2022; $1.4 billion in sales lost for Pennsylvania small business

Texas: 7,900 jobs lost by 2022; $4.1 billion in sales lost for Texas small business

West Virginia: 1,200 jobs lost by 2022; $290 million in sales lost for West Virginia small business

Wisconsin: 2,300 jobs lost by 2021 (1,500 small business); $830 million in sales lost for Wisconsin small business

re: Study: Obamacare threatens 3.2 million small business jobs(Posted by idlewatcher on 3/29/13 at 12:31 pm to cajunangelle)

quote:CajunAngele

[Your avatar is still awesome ]

How will this affect foreign businesses operating domestically? Would seem that several people (LLC's) will start companies overseas and in turn, re-open their office under a Private Limited banner and move the HQ overseas and claim their US office as a subsidiary or affiliate.

re: Study: Obamacare threatens 3.2 million small business jobs(Posted by Champagne on 3/29/13 at 6:09 pm to cajunangelle)

Cajun Angele, the issue is closed. Once Obama got re-elected, Obamacare became a lock to be fully implemented.

All of the information coming out now about the down-side of Obamacare was available to the public before the election. People did listen. The people who stand to be hurt most by Obamacare voted in majority numbers against Obama, I think.

Obama was re-elected by a new and recently arisen demographic paradigm, and, hard-working middle class US citizens are not part of that new demo in significant numbers.